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    Question

    Given: • Net income: ₹30 lakh •

    Depreciation: ₹10 lakh • Increase in inventory: ₹5 lakh • Decrease in payables: ₹4 lakh • Increase in receivables: ₹6 lakh Compute cash flow from operating activities using the Indirect Method.
    A ₹25 lakh Correct Answer Incorrect Answer
    B ₹20 lakh Correct Answer Incorrect Answer
    C ₹27 lakh Correct Answer Incorrect Answer
    D ₹15 lakh Correct Answer Incorrect Answer
    E ₹30 lakh Correct Answer Incorrect Answer

    Solution

    CFO = Net income + Depreciation – Inv – Rec - Payables = ₹25L

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